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An RCA Analysis of Textiles and Clothing in Pakistan, India, and Bangladesh

Author

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  • Khurram Shahzad

    (Lecturer, School of Economics, Minhaj University, Lahore; PhD student, Pakistan Institute of Development Economics, Islamabad, Pakistan.)

Abstract
This study focuses on the revealed comparative advantage analysis for Clothing and Textile sectors of Pakistan, India and Bangladesh. We have applied the Balassa’s (1965) Index for the analysis. The revealed comparative advantage has been analyzed in two different ways: one static on the year 2010 and the other one dynamic based on 1980, 1990, 2000 and 2010. For the dynamic analysis, the average of the three previous years from 2010 were taken and used for revealed comparative advantage. The results show Pakistan’s highest revealed comparative advantage for textiles over both India and Bangladesh. India has revealed a comparative disadvantage in textile in competition of Pakistan and Bangladesh. For clothing, Bangladesh has very dominant revealed comparative advantage when competing with Pakistan and India. Dynamic revealed comparative advantage indicates Pakistan has been gaining a comparative advantage in textiles since 1980 but with a declining percentage of textile export. Bangladesh has significantly gained a comparative advantage in clothing since the 1980s.

Suggested Citation

  • Khurram Shahzad, 2015. "An RCA Analysis of Textiles and Clothing in Pakistan, India, and Bangladesh," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(1), pages 157-168, Jan-June.
    • Handle: RePEc:lje:journl:v:19:y:2015:i:1:p:157-168
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    References listed on IDEAS

    as
    1. Hanif, Muhammad N. & Jafri, Sabina K., 2006. "Financial Development and Textile Sector Competitiveness: A Case Study of Pakistan," MPRA Paper 10271, University Library of Munich, Germany.
    2. Imre Ferto & Lionel J. Hubbard, 2002. "Revealed Comparative Advantage and Competitiveness in Hungarian Agri-Food Sectors Technology Foresight in Hungary," CERS-IE WORKING PAPERS 0208, Institute of Economics, Centre for Economic and Regional Studies.
    3. Muhammad Nadim Hanif & Sabina Khurram Jafri, 2008. "Financial Development and Textile Sector Competitiveness," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(1), pages 141-158, June.
    4. Amita Batra & Zeba Khan, 2005. "Revealed comparative advantage: An analysis for India and China," Indian Council for Research on International Economic Relations, New Delhi Working Papers 168, Indian Council for Research on International Economic Relations, New Delhi, India.
    5. Amir Mahmood, 2004. "Export Competitiveness and Comparative Advantage of Pakistan’s Non-agricultural Production Sectors: Trends and Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 541-561.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Park-Poaps H, 2018. "The Roles Technological Advancement and Knowledge Transfers in the Global Textiles and Clothing Sector," Current Trends in Fashion Technology & Textile Engineering, Juniper Publishers Inc., vol. 2(1), pages 13-17, January.
    2. Hasan Halife, 2022. "Competitiveness Analysis of Textile Industry of Turkey: Revealed Comparative Advantage Approach," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 25-30, December.
    3. Nith, Kosal, 2019. "Cambodian place in the International trade of Textile and Clothing: Threat and Opportunity," MPRA Paper 98591, University Library of Munich, Germany.

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    More about this item

    Keywords

    Revealed Comparative Advantage; Textile; Clothing; Product Positioning; Balassa Index; Pakistan.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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